Solutia Sales Up 20 Percent in Second Quarter

St. Louis, MO, July 28, 2008--Solutia Inc. reported a net loss of $16 million for the second quarter, compared to net income of $56 milllion a year ago.

Net sales were $1.09 billion, a 20 percent increase over net sales of $911 million for the same period in 2007.

Solutia's results were impacted by one time events totaling an after-tax loss of $33 million in 2008 and an after-tax gain of $10 million in 2007. After consideration of these special items in both periods, income held steady at $17 million in the second quarter of 2008 or $.28 per share.

``We are pleased to report solid second quarter growth, driven by strong volumes and price increases across our businesses,'' said Jeffry N. Quinn, chairman, president and chief executive officer.

``Importantly, even though the escalation of raw materials accelerated in the second quarter compared to the first, our focused pricing actions and strong market positions allowed us to recover a significant percentage of this cost increase. We also continued to benefit from our geographically diverse business, as international growth -- particularly in China -- more than offset softening domestic markets.''

Quinn added, ``In addition to producing strong results during the second quarter, we announced two important strategic developments which will have the potential to further enhance our transformation to a high-margin pure play specialty chemical company. We retained HSBC to review strategic alternatives for the nylon business, and laid the foundation for a key longer-term growth opportunity by establishing our Saflex Photovoltaic business.''